5 Things to Know As You Wait for Closing Day
Most people have this preconceived thought that once a seller excepts their offer all they need to do is sign and the house is theirs. However, it’s not this easy and there are many variables that may come into play. The closing day can be as formal and complicated as the transaction itself, but for others it could be simple and straight to the points. Whichever it is, there are important things that you should keep in mind while waiting for those keys to be yours.
There is a possibility that your mortgage rate could expire. Mortgage interest rates can fluctuate daily and the rate you were quoted isn’t good forever. Instead, your bank locks in your interest rate for a certain amount of days. It’s important that you remember how many days your rate is locked in, so that you can remember not to let it expire.
The mortgage process isn’t over after you complete your application and submit the paperwork. There are many things that come into play to get approved for a loan. Lenders will verify income, assets, or credit all the way up to the last minute. It is extremely important that you do not make any big purchased until after you have closed. Big purchases could affect your credit, which could affect your ability to get approved for a loan.
The house isn’t yours yet and be sure to take advantage of your final walk-through. In some places this is a formal event and in others it’s as simple as a checklist. You should take this seriously because you don’t want to close if systems aren’t working, the seller didn’t make necessary repairs, etc. You will have the opportunity to postpone the closing until the necessary fixes are made.
The closing day could be extremely laid back and low-key
In most places, the two parties do not meet on closing day. Buyers sign the necessary paperwork and the seller shows up at the title company to sign the deed. It’s straightforward and to the point.
To have a smooth transaction, you should be on the lookout for red flags and do your research. Be sure that you have a solid team for example, a real estate agent, mortgage pros, title company, attorneys and inspectors. Processes and customs vary by market places, so getting as much information upfront and in the beginning will help you avoid unpleasant surprises on the way.